New Delhi:
Two days after the massive petrol price hike, Union Oil Minister Jaipal Reddy defended the decision. He blamed it on global factors beyond the government's control and said oil companies were lect with no choice.
Here are the highlights of his interaction with the press:
- India confronts a double disaster - devaluation of rupee and increase in international prices of crude oil.
- The situation is continuing unabated. These two massive negative developments at a global level, beyond our control.
- This situation canot be manipulated within the country...historically we've had systems... that can be discussed.
- We cannot find instant solutions. Consequent upon the recent increase, we are duly conscious of the sense of disturbance among consumers.
- Our oil companies are blue chip companies in the global context.
- We will watch for just a few days - days not weeks. This is not in infinity. We'll come back to you with our view.
- It's a national problem created by global developments.
- The centre could reduce taxes, states could reduce taxes...but remember every system has a legacy to deal with.
- I have been speaking to the Finance Minister; we have both decided to consult the Chief Ministers too
- All parties in the country need to work together; easy to use rhetoric.
- The Congress party , to which I belong is a political party. Like all political parties, who wants to advocate unpopular causes, even if they are worthy ones.
- No time is a good time for increase in prices. The oil companies felt the increase was necessary, there was no alternative.
- The logic of increasing price diesel, LPG and kerosene is unassailable, but politics will not allow it.
- EGOM alone is competent on prices of regulated products. I have urged for a meeting.
- Except petrol, diesel, LPG and kerosene are regulated. But during certain periods the oil marketing companies could not increase prices and lost Rs 2200 crore in 2011 only on petrol; 2011-2012 it was Rs 4800 crore. They weren't compensated by the govt. The Finance Ministry did not have money to spare.
- Oil marketing companies are frightened by the rupee devaluation.
- We cannot run the country based on popular sentiments.
- There is not a single season that elections are not held in some part of the country, so that cannot be a consideration.